Hamilton Insurance (HG) - 2024 Q4 - Annual Results

Financial Performance - Net income for 2024 was $400 million, representing a 55% increase compared to 2023[2] - Net income attributable to common shareholders increased by$ 141.7 million, or 54.8%, to $400.4 million, resulting in a diluted income per share of$ 3.67, up from $2.44[16] - Basic income per share attributable to common shareholders was$ 3.81, compared to $2.47 in 2023, an increase of 54.3%[31] - Total revenues for the year were$ 2,329,924, a 48.3% increase from $1,571,045 in 2023[31] - Underwriting income for the year was$ 149,364, an increase of 15.0% from $129,851 in 2023[34] - Net investment income for the year was$ 63,267, compared to $30,456 in 2023, reflecting a growth of 107.5%[31] Premiums and Underwriting - Gross premiums written reached$ 2.4 billion, a 24.2% increase from the previous year[6] - Net premiums earned increased by 31.6% to $1.7 billion compared to 2023[6] - Gross premiums written for the year reached$ 2,422,582, a 24.1% increase compared to $1,951,038 in 2023[31] - Net premiums written rose by$ 440.7 million, or 29.8%, to $1.9 billion, driven by increases in both the International Segment ($ 199.2 million, or 25.9%) and the Bermuda Segment ( $241.5 million, or 34.0%) [16] - The combined ratio for the year was 91.3%, indicating strong underwriting discipline despite significant large loss activity[3] - The combined ratio for the year was 91.3%, an increase of 1.2 percentage points from 90.1% in 2023[16] - The attritional loss ratio for the current year was 53.1%, reflecting an increase of 0.9 percentage points compared to the previous year, primarily due to losses from the Baltimore Bridge collapse[16] Assets and Equity - Total invested assets and cash increased to$ 4.8 billion from $4.0 billion at the end of 2023[22] - Total shareholders' equity rose to$ 2.3 billion, up from $2.0 billion at December 31, 2023[22] - Total assets increased to$ 7,796,033, up from $6,671,355, representing a growth of 16.8% year-over-year[29] - Cash and cash equivalents rose to$ 996,493, up from $794,509, representing a growth of 25.5%[29] Losses and Expenses - Losses and loss adjustment expenses for the year totaled$ 1,010,173, up from $714,603, indicating a rise of 41.3%[31] - Catastrophe losses for the year amounted to$ 49.1 million, primarily due to Hurricane Milton and Hurricane Helene[9] - Catastrophe losses totaled $87.6 million, primarily from Hurricane Helene ($ 52.6 million) and Hurricane Milton ( $37.8 million)[17] - Corporate expenses totaled$ 61.1 million, including $9.2 million related to the Value Appreciation Pool[6] Risks and Strategic Considerations - The company faces various risks that could materially affect actual results, including competition, catastrophic events, and macroeconomic conditions[45] - The company emphasizes the importance of adequate reserves to cover actual losses and accurately evaluate underwriting risks[45] - There are significant uncertainties related to the company's ability to execute growth strategies and complete planned transactions[49] - The company does not plan to pay cash dividends on Class B common shares in the near term[49] - The cyclical nature of the insurance and reinsurance business may lead to fluctuations in pricing and terms for products[45] - The company is exposed to credit risks from intermediaries and must manage liquidity requirements effectively[45] - The company’s strategy includes managing alternative reinsurance platforms on behalf of investors[49] - The company is subject to regulatory risks that could impact its ability to operate effectively in the insurance industry[49] - The company acknowledges the potential impact of geopolitical events and global economic conditions on its operations[45]